iRobot, the maker of Roomba robot vacuums, has filed for Chapter 11 bankruptcy after reaching a restructuring agreement that hands control of the company to its main supplier and lender, Shenzhen Picea Robotics.
The Massachusetts-based company filed in Delaware on December 14. Under the plan, Shenzhen Picea will receive 100% of the equity in the reorganised business, while existing shareholders will be wiped out. Santrum Hong Kong is also involved in the restructuring.
iRobot said the process will allow it to continue operating as a going concern, meet employee obligations and pay suppliers in full during the court-supervised process. The filing follows years of declining earnings and mounting debt pressures.
